Raphael Zier is one of the four founders of PerfectStay. A B2B flash sales specialist who shares his assessment of the summer… and 30 years of entrepreneurship.
You are a supplier of travel flash sales for Air France, Transavia, Veepee… What is the outcome of the summer?
Raphael Zier: For the summer and the month of September, we are flirting with the figures for 2019. We are approaching them. This is a very good performance, given the context and the gradual relaunch of our partnerships. However, we had refocused mainly on the French market, whereas we were positioned in nine countries before the crisis. The season was marked by the success of a limited number of destinations – Greece and the Mediterranean basin – and last-minute sales.
You had declared 50 million summer in 2018 , you expected to double in 2019. What about?
Raphael Zier: Yes, we achieved nearly 100 million euros in 2019. We will not reach them in 2021. The start of the year has been difficult but we are confident in our ability to exceed the figures for 2019 in the coming months if the market doesn’t have another surprise in store for us. And we don’t know how the year will end.
In 2018, you raised 15 million euros to export your B2B flash sales model. Are you relaunching the international?
Raphael Zier: We had launched nine countries in nine months, mainly from our offices in Paris. With the crisis, we made the decision to completely suspend operations for a few months. We then restarted the activity in France, and we are reopening Germany, England, Switzerland. We will continue the recovery internationally, depending on the evolution of the business. We want to reopen all countries and hopefully get back to our past trajectory. In summary, despite the wait-and-see context, we are optimistic for the future. We have incredible teams and partners with prestigious brands, which reassures customers. Especially in times of crisis. As soon as the demand is there, sales resume. Conversion rates are very good.
To get through the crisis, did you use a state-guaranteed loan (PGE)?
Raphael Zier: Like almost everyone in the industry, we called on an EMP from the start of the crisis. We have also obtained additional support from our shareholders, which allows us to look to the future with relative peace of mind. We do not disclose the corresponding amounts.
Have you reduced your workforce, too, like most players in the sector?
Raphael Zier: Yes, unfortunately, like the vast majority of the market, we had to reduce our workforce and above all put our deployment on hold. Parting with part of your teams is extremely difficult. Especially since we have developed a real family spirit, the Perfect Spirit. But we are pragmatic with my associates: the life of an entrepreneur is ups and downs, very quickly followed by very lows, then immediately very highs. It’s a Roller Coaster, a permanent Big 8. You have to accept it, otherwise you can’t be an entrepreneur. We can go from signing lots of contracts accompanied by explosive growth, to having to close everything. This is what happened with the pandemic.
It’s the Big 8 permanently, you mean during this crisis?
Raphael Zier: No, permanently. I have been an entrepreneur for over 30 years. It’s a succession of roller coasters. You can go from a period of euphoria to its opposite, due to a financial crisis, the loss of a structuring contract, competition, etc.
You are part of French Tech . Did it help you during the crisis?
Raphael Zier: We are already very happy to be part of it. Belonging to French Tech helped us set up our PGE with different banks, in just six weeks. This status is an important asset. All of the state aid, whatever the industry, has helped companies remarkably, which makes it possible to maintain relatively stable unemployment in restaurants, travel and events. It is better to maintain an economy than to sacrifice it to revive it later.
When do you expect to reach profitability?
Raphael Zier: We have set ourselves the goal of seeking profitability in the short term, ie in the coming months. We have improved our fundamentals over the past 18 months. Technology will be the “driver” for faster profitability. We have extremely strong growth ambitions. Our goal is also to raise funds to continue our development, particularly in the United States. It was our initial plan, with my associates: Laurent Curutchet, Stéphane Libre, Ludovic Bailly. We have to take it back.
What is your priority today?
Raphael Zier:Our priority is to return to strong growth, as before the crisis. We would like very quickly to return to a level of turnover equivalent to 2019. The recovery goes through the international, our partners, but also the development of our technology. We present ourselves as a Travel Tech. Tech is key, and will continue to reinvent our industry. There are far too many travel offers on the Internet, which wastes a lot of time for travelers. We are committed to finding the right offers at the best rates. We have also taken advantage of the crisis to improve features. Emirates Holidays, the leading airline brand, now offers our Smart Dynamic Packaging. This solution makes it possible to select quality and attractive offers, thanks in particular to artificial intelligence. The future is curation and the best price.
